‘Pakistan now safe for trade and investment’

by Lalin Fernandopulle

Pakistan which has re-bounced under Premier Nawaz Sharif is now a safe place for trade and investment, Pakistan Commerce Minister Khurram Dastgir Khan told the media during his visit to Sri Lanka last week to boost bilateral trade and investment.

He said Sri Lankan businessmen are welcome to visit Pakistan and set up joint ventures with Pakistani companies. There are ample opportunities for trade and investment between the two countries which share a similar political history.“Peace and stability has been restored to a great extent and normal life has resumed with people eager to put things together and revive livelihood. Sri Lankans must visit Pakistan and see for themselves the changes”, Khan said.

He said after years of terrorist attacks and political upheaval Pakistan has settled into a period of relative calm. Terrorist attacks have declined by around 70 percent and today Pakistanis flock to shops and restaruatnts. People feel more secure today. Development projects have resumed.

Sri Lankan companies could explore opportunities in power and energy, pharmaceutical, construction and hospitality sectors in Pakistan.

Bilateral trade between Sri Lanka and Pakistan under the Free Trade Agreement is inadequate and there is enormous potential for growth, the Pakistani Minister said. The free trade agreement which Sri Lanka signed with Pakistan in 2002 came into force in 2005.

However, trade between the two countries under the FTA has been around US $ 450 million with Sri Lankan exports amounting to around US $ 83 million and imports from Pakistan around US$ 280 million.

“Our aim is to increase trade between Sri Lanka and Pakistan to US $ 1 billion and Pakistani investments in Sri Lanka to a noteworthy level from the current US$ 130 billion soon,” Khan said.

Pakistan is redoubling it efforts to boost trade and investments with Sri Lanka. The meeting between President Maithripala Sirisena and Pakistani Prime Minister Nawaz Sharif early next year will certainly help boost trade between the two countries. It is time for the private sectors of both countries to make full use of the FTA and set up joint ventures.

The number of airline flights operating between the two countries must be increased to boost economic ties. Pakistan will explore the possibility of reducing non tariff barriers to promote trade, Khan said.

He said that he had brought four significant and pleasant pieces of information from Pakistan for his Sri Lankan friends which are related to the strengthening of democracy in Pakistan, successful tackling of violent terrorism and return of peace, revival of the economy, and steps to eliminate the power and energy crisis.

The Minister also highlighted the potential of the Pakistan-China Economic Corridor to enhance growth, development and connectivity of the South Asia region.

President, Sri Lanka-Pakistan Business Council, Rohitha Thilakaratne expressed concern over the decrease in trade between the two countries by US$ 100 million last year despite the Free Trade Agreement between the two countries.

Trade between Sri Lanka and Pakistan during the year 2014 stood at US $ 350 million. The SLPBC will facilitate more trade and investment between the two countries with trade exhibitions and B2B meetings in both countries.

Pakistani High Commissioner to Sri Lanka, Syed Shakeel Hussain said the trade agreement that was signed between Sri Lanka and Pakistan has not been fruitful. This is something that both countries have to focus on immediately.

Under the FTA, the Government of Pakistan has granted Duty-free access for 4,500 items from Sri Lanka. Pakistan is the second largest trading partner of Sri Lanka in the SAARC region after India. Substantial growth in bilateral trade is seen in both exports and imports specially after the Free Trade Agreement between the two countries was implemented in 2005, indicating the potential for expansion and development of trade between the two countries.

Major items exported from Sri Lanka to Pakistan are rubber and rubber-based products, coconut and coconut products, betel leaves, betel nuts, fruits and vegetables, tea, spices, confectionery items, food preparations, herbal and cosmetic products, artificial waxes, paints, activated carbon, ceramic and porcelain products, artificial and imitation jewellery and knitted fabric.

Cotton, rice, cement, potatoes, fabrics, medicament, textile fibres, electrical machines and apparatus, dried fish are some of the major items imported from Pakistan to Sri Lanka.